Functional GUIDE
Supplier evaluation and
performance
moniroring in SAP
S/4HANA
BY SADOU BALDE
balsadou@gmail.com © All rights reserved
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© All rights reserved
Table of contents
Introduction ............................................................................................................. 2
Definition of supplier evaluation and performance process ......................................... 2
Data..................................................................................................................... 2
The process .......................................................................................................... 2
Process ................................................................................................................ 3
Business scenarios: Manufacturing industry ........................................................... 3
Steps involved with SAP T-code .............................................................................. 4
Step 1: Manage supplier evaluation criteria ......................................................... 4
Step 2 create supplier evaluation ........................................................................ 5
Step 3: display supplier and maintain information................................................ 5
Module used ............................................................................................................ 5
Conclusion .............................................................................................................. 5
Table des illustrations ............................................................................................... 5
Sadou BALDE
SAP Functional Consultant Page | 1
YouTube @ www.youtube.com/@SAPLearningandsharing
© All rights reserved
Introduction
Supplier evaluation and performance monitoring is a process for organizations aiming to
optimize procurement and supply chain efficiency. It enables companies to assess
supplier performance based on multiple criteria such as quantity, price, delivery time,
and quality. By using SAP, companies can automate supplier performance tracking,
ensure compliance, and enhance supplier collaboration.
Definition of supplier evaluation and performance process
Supplier evaluation is the process of assessing and monitoring the performance of
suppliers based on predefined criteria. It ensures that organizations engage with reliable
suppliers who meet contractual and quality requirements.
Data
Material : BOXITE01
Vendor : 1005178/1005179
Contracts : 4600000008/ 4600000009/4600000012
Request for quotation : 6000000000/6000000001/6000000002/6000000003
The process
The supplier evaluation and performance monitoring process in SAP Includes these
principal elements:
▪ Defining supplier evaluation criteria
▪ Assigning weightage to different factors
▪ Tracking supplier performance over time
▪ Adjusting evaluation scores manually when required
SAP provides a structured framework for supplier evaluation, integrating procurement
data to offer a comprehensive view of supplier performance.
Sadou BALDE
SAP Functional Consultant Page | 2
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Process
Figure 1 : Process.
Business scenarios: Manufacturing industry
A global manufacturing company relies on multiple suppliers for raw materials and
components. However, variations in supplier performance lead to issues such as
▪ Late deliveries disrupting production
▪ Quality defects increasing rework and costs
▪ Pricing inconsistencies affecting procurement budgets
By implementing SAP supplier evaluation (SL4), the company can track supplier
performance, identify high-risk suppliers, and negotiate better terms based on objective
performance data.
Sadou BALDE
SAP Functional Consultant Page | 3
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Steps involved with SAP T-code
Step 1: Manage supplier evaluation criteria
To manage supplier evaluation criteria, use SPRO T-code and follow this path:
Path: SPRO > SAP Reference IMG > Materials Management > Purchasing > Supplier
Evaluation > Define Evaluation Criteria
Figure 2: Evalution criteria
Figure 3 : Evaluatio criteria 2
Define the key parameters for evaluation.
Sadou BALDE
SAP Functional Consultant Page | 4
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Step 2 create supplier evaluation
To create a supplier evaluation, use T-code ME61
Figure 4 : Maintain supplier
Step 3: display supplier and maintain information
To display supplier evaluation, use T-code ME6A, or ME62 or ME6B. it depends on what
you are looking for (Price, Quantity, Quantity notification, quantity inspection….).
Module used
In this process you will use three modules, Quality management (QM), materials
management and finance (to evaluate supplier quality and for cost related supplier
evaluations).
Conclusion
This process is essential for organizations aiming to enhance procurement efficiency,
reduce risks, and improve supplier relationships. By implementing an automated and
data-driven supplier evaluation system, businesses can identify top performance
suppliers and reduce procurement costs.
Table des illustrations
Figure 1 : Process. .................................................................................................... 3
Figure 2: Evalution criteria ......................................................................................... 4
Sadou BALDE
SAP Functional Consultant Page | 5
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Figure 3 : Evaluatio criteria 2 ...................................................................................... 4
Figure 4 : Maintain supplier ....................................................................................... 5
Sadou BALDE
SAP Functional Consultant Page | 6
